Home Buyers Over 55

The NAHB's 50+ Housing Council recently published a report on older homebuyers, Profile of the 50+ Housing Market. According to the report, more than a quarter of a million people will opt to buy new housing in communities specifically built for those ages 55 or better, and more than 100,000 units constructed in 2008 will be targeted to this growing niche market.

They found that while most buyers wanted a better home than their previous or current home, most felt the new house would cost less. They also found that most older buyers were not as adversely affected by the housing market as younger buyers because fewer than half needed to take out a mortgage.

Real Estate Headlines

The National Association of Exclusive Buyer Agents maintains forums for its members. Often the conversation is pretty industry focused – there someone posted a fun list the other day of headlines of yesteryear. The list was originally posted to the list by the Mountain Director of NAEBA:

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." (Time, December 1, 1947)

"Houses cost too much for the mass market. Today's average price is around $8,000-out of reach for two-thirds of all buyers." (Science Digest, April, 1948)

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs $28,000." (Business Week, September 4, 1969)

"The era of easy profits in real estate may be drawing to a close." (Money, January, 1981)

"The golden-age of risk-free run-ups in home prices is gone." (Money, March 1985)

"Most economists agree... [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s." (Money, 1986)

"Financial planners agree that houses will continue to be a poor
investment." (Kiplinger's Personal Financial Magazine, November 1993)

Submitted by Ron Jensrud, Exclusive Buyer Agent

Reverse Home Mortgages

yABC News ran an informative story on reverse mortgages last month. A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in your home. According to National Reverse Mortgage Lenders Association (NRMLA), the number of reverse mortgages insured by the U.S. Department of Housing and Urban Development (representing 90 percent of all such loans) has gone from 157 in 1990 to more than 107,558 in 2007, with a forecast of more than 200,000 this year.

Some basic facts:

• To qualify for a reverse mortgage, you must own your home and be at least 62 years old.
• Your home must be your primary residence
• You must have paid off your entire loan or have significant equity built up that your mortgage balance can be paid off with a small portion of the reverse mortgage
• Your home must be in structurally good condition and free of major problems such as termite damage or roof leaks
  

ABC discussed a couple of benefits:

• It is a way to get ready cash.
• The lender cannot remove homeowners from their homes as long as they stay current with their property taxes, insurance and home maintenance.
  

They also mentioned some drawbacks:

• You will pay closing costs on a reverse mortgage
• A reverse mortgage may affect your eligibility for state and federal government assistance programs, such as Medicaid.
• As you get paid for your house your equity decreases, so you are able to leave less for your heirs.

All About Shakopee

On the Minnesota River, Shakopee, Minnesota has the feel of a small town within reach of the Twin Cities. It’s only 23 miles from Minneapolis. The city is home to many entertainment attractions such as Historic Murphy’s Landing, Valleyfair Amusement Park, and Canterbury Park Racetrack.

Quick stats:

Population: 20,568
Population growth: 38.3%
Median income: $72,452
Median age: 31
Median Value of Owner-Occupied Housing Units: $141,500

To learn more about Shakopee Minnesota, visit the city web site or visit the Buyers Real Estate Group site for more information on communities throughout the Twin Cities.

Welcome Home to a New Bathroom

What a difference a bathroom can make. Check out Buyer Real Estate Group’s web site to see the beautiful work done in the bathroom of a recently purchased house.

Buyer agent Susan Hofflander were there to help the homebuyers envision what could be in the their new home and then helped find the connections to make it happen.

Spring Clean Your Finances

shWe’ve closed the door on January but many of us are still suffering financial hangovers from a wild holiday. Here are some quick steps to help you clean up your finances.

• Open your bills and commit to at least paying the minimum each month. That will stop the finance charges from accruing.
• Contact the creditors if you know that you can’t make the payments. Being proactive and continuing to make whatever payment you can, will help.
• Look at the interest rate on your cards. Try to shift the balance to the cards with the lowest interest rates.
• Start using cash to stop the debt from increasing.
• Assess your current spending. If you haven’t been to the gym in 6 months, consider canceling the membership. Use the gym payments to pay off a credit card.
  

It might not sound like fun, but getting your finances in order can be the first step towards buying your first home! When you’re ready call an exclusive home buyer agent to help you make smart decisions for your new home.